{"id":310911,"date":"2023-03-21T10:45:35","date_gmt":"2023-03-21T10:45:35","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=310911"},"modified":"2023-03-21T10:41:29","modified_gmt":"2023-03-21T10:41:29","slug":"bitcoin-boasts-safe-haven-characteristics-during-economic-uncertainty-galaxy","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bitcoin-boasts-safe-haven-characteristics-during-economic-uncertainty-galaxy\/","title":{"rendered":"Bitcoin boasts safe-haven characteristics during economic uncertainty: Galaxy"},"content":{"rendered":"<p>According to new data from the digital asset management company Galaxy, Bitcoin (<a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">BTC<\/a>) is the best-performing asset of the year compared to equities, fixed-income securities, indices, and commodities on a risk-adjusted basis.<\/p>\n<p>The newly released <a href=\"https:\/\/www.galaxy.com\/research\/insights\/bitcoin-data-shows-bullish-foundation\/\">data<\/a> corresponds to gold increasing and equities decreasing. It explains how the volatility of Bitcoin is on a multi-year downward trend, and that futures open interest and perpetual swap funding rates suggest the rally is not based purely on speculation.<\/p>\n<p>On-chain data shows ongoing accumulation, longer holding times, and growing ownership dispersion. The upcoming 4th halving is expected to precede a longer-term bullish advance.<\/p>\n<h2>Bitcoin performance as compared to other assets<\/h2>\n<p>Bitcoin has been the <a href=\"https:\/\/cryptoslate.com\/glassnode-data-reveals-bullish-trends-for-bitcoin-amidst-latest-rally\/\">top-performing<\/a> asset of 2023 when measuring risk-adjusted performance (Sharpe ratio) compared to equities, fixed-income securities, indices, and commodities. It has consistently been one of the best performers across various timeframes, with the exception of the one-year timeframe.<\/p>\n<figure id=\"attachment_310933\" aria-describedby=\"caption-attachment-310933\" style=\"width: 2196px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-310933 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.13.26-AM.png\" alt=\"Risk-adjusted performance \" width=\"2196\" height=\"1058\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.13.26-AM.png 2196w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.13.26-AM-300x145.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.13.26-AM-1024x493.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.13.26-AM-768x370.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.13.26-AM-1536x740.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.13.26-AM-2048x987.png 2048w\" sizes=\"(max-width: 2196px) 100vw, 2196px\" \/><figcaption id=\"caption-attachment-310933\" class=\"wp-caption-text\">(Source: Galaxy)<\/figcaption><\/figure>\n<p>Bitcoin's correlation with equities has been high over the past 18 months but has recently decreased. Meanwhile, its correlation with gold has increased significantly \u2014 particularly since the banking crisis.<\/p>\n<figure id=\"attachment_310935\" aria-describedby=\"caption-attachment-310935\" style=\"width: 2188px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-310935 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.16.52-AM.png\" alt=\"Bitcoin correlation to s&p\" width=\"2188\" height=\"1052\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.16.52-AM.png 2188w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.16.52-AM-300x144.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.16.52-AM-1024x492.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.16.52-AM-768x369.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.16.52-AM-1536x739.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.16.52-AM-2048x985.png 2048w\" sizes=\"(max-width: 2188px) 100vw, 2188px\" \/><figcaption id=\"caption-attachment-310935\" class=\"wp-caption-text\">(Source: Galaxy)<\/figcaption><\/figure>\n<p>These correlations indicate that Bitcoin has exhibited safe-haven characteristics in the current economic climate \u2014 demonstrating the value of Bitcoin's fundamental characteristics.<\/p>\n<figure id=\"attachment_310939\" aria-describedby=\"caption-attachment-310939\" style=\"width: 2192px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-310939 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.18.20-AM.png\" alt=\"Bitcoin correlation to gold and Nasdaq\" width=\"2192\" height=\"1042\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.18.20-AM.png 2192w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.18.20-AM-300x143.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.18.20-AM-1024x487.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.18.20-AM-768x365.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.18.20-AM-1536x730.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-21-at-10.18.20-AM-2048x974.png 2048w\" sizes=\"(max-width: 2192px) 100vw, 2192px\" \/><figcaption id=\"caption-attachment-310939\" class=\"wp-caption-text\">(Source: Galaxy)<\/figcaption><\/figure>\n<h2>Notable future supply events<\/h2>\n<p>There are two upcoming supply events for Bitcoin \u2014 one bullish and one potentially bearish. The 4th halving \u2014 set for April 2024 \u2014 is expected to bring the inflation rate below 1%, historically leading to subsequent bull runs. Galaxy notes that the drop in new daily issuance may be less impactful than expected.<\/p>\n<p>Furthermore, the <a href=\"https:\/\/cryptoslate.com\/mt-gox-pushes-deadline-for-btc-repayment-registration-to-april\/\">Mt. Gox bankruptcy<\/a> trustee holds 141,686 BTC \u2014 which it said recently it does not plan to sell. The largest creditor \u2014the Mt. Gox Investment Fund \u2014 opted to receive early payment in approximately 70% BTC and 30% cash and does not plan to sell the BTC it receives.<\/p>\n<p>The early distribution date is expected September and it's expected that most BTC will not be sold upon distribution. There may be second-order impacts in BTC lending markets if creditors look to lend their BTC either off-chain or on-chain via converting to WBTC, according to Galaxy.<\/p>\n<p>Read the full Galaxy <a href=\"https:\/\/www.galaxy.com\/research\/insights\/bitcoin-data-shows-bullish-foundation\/\">report<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to new data from the digital asset management company Galaxy, Bitcoin (BTC) is the best-performing asset of the year compared to equities, fixed-income securities, indices, and commodities on a risk-adjusted basis. The newly released data corresponds to gold increasing and equities decreasing. It explains how the volatility of Bitcoin is on a multi-year downward [&hellip;]<\/p>\n","protected":false},"author":1406,"featured_media":310955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin boasts safe-haven characteristics during economic uncertainty: Galaxy<\/title>\n<meta name=\"description\" content=\"Bitcoin has been the top-performing asset of 2023 when measuring risk-adjusted performance (Sharpe ratio).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/bitcoin-boasts-safe-haven-characteristics-during-economic-uncertainty-galaxy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin boasts safe-haven characteristics during economic uncertainty: Galaxy\" \/>\n<meta property=\"og:description\" content=\"Bitcoin has been the top-performing asset of 2023 when measuring risk-adjusted performance (Sharpe ratio).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/bitcoin-boasts-safe-haven-characteristics-during-economic-uncertainty-galaxy\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-21T10:45:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-21T10:41:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/bitcoin-bullish.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dorian Batycka\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dorian Batycka\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/bitcoin-boasts-safe-haven-characteristics-during-economic-uncertainty-galaxy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/bitcoin-boasts-safe-haven-characteristics-during-economic-uncertainty-galaxy\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#person\",\"name\":\"Dorian Batycka\",\"url\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"caption\":\"Dorian Batycka\"},\"jobTitle\":\"Contributor\",\"description\":\"Dorian Batycka is a journalist interested in art and technology. 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